Study on Carey Island to complete in 1Q21

The study on the development of the 3rd port includes economic impact, engineering, marine and environment

by SHAHEERA AZNAM SHAH/ pic credit: GOOLE MAP

THE feasibility study for the development of an integrated maritime city on Carey Island, Selangor, is expected to be completed in the first quarter of 2021 (1Q21).

Port Klang Authority (PKA) GM Capt K Subramaniam said the study, which will guide the government in approving the development of a third port in Klang, has commenced in August and will take 18 months to complete.

“The feasibility study was conducted to advise the government on the outcome of building another port in Klang, and whether we are going to go ahead with it.

“The study had commenced in August and we are in the second month. The whole study will take about 18 months and we are hoping to get the report in early 2021,” he told The Malaysian Reserve (TMR) recently.

Subramaniam said that PKA has appointed seven consultants to carry out the feasibility study. They would be inspecting the four aspects of the study — economy, marine, engineering and environment.

“PKA had gone through a tender process and we have identified a successful firm that will lead another five consultants who are very experienced in their fields. “We are looking at four areas — economic impact, engineering, marine and environment — and these areas will be heading by the reputable consultants,” he said.

PKA has appointed Vestera Resources Sdn Bhd as the main consultant. The firm is being assisted by six other consultancies — CTI Consultancy, BMT Hong Kong Ltd, Ranhill Consulting Sdn Bhd, Runding Trafik MZK Sdn Bhd, Asia Pacific Environmental Consultants Sdn Bhd and HR Wallingford Ltd.

The study, which will detail out the financial models and the expenses to carry out the maritime project, is expected to cost the government RM6 million.

“The study is looking at the financial models and the cost to undertake the project, and it is the first phase of the project development.

“We will have to table the report to the government and if the recommendation is strong and the location is able to support the project, we will be moving on to the second phase, depending on the recommendation,” he said.

The maritime project was highlighted by Finance Minister Lim Guan Eng in the recent tabling of the Budget 2020.

Since Port Klang is the 12th busiest container port globally, Lim said the government would undertake an in-depth study on the Carey Island’s development to propel Port Klang further as a regional maritime centre and cargo logistics hub.

In June, Subramaniam said PKA had received 30 bids for the tender process to carry out the study, which had managed to reduce to 18 submissions.

The maritime project, which will include the third port in Klang, was put on hold by the current government to allow for the analysis of Carey Island’s capacity to house a seaport.

The port is expected to cater up to 30 million twenty-foot equivalent units, relatively higher than the combined capacity of the existing two ports in Klang.

The project owners — MMC Port Holdings Sdn Bhd, Sime Darby Property Bhd and India’s Adani Ports and Special Economic Zone Ltd, had initially agreed to carry out the study for the proposed development but was later nullified by the government.

Transport Minister Anthony Loke said the study would be carried out independently by PKA to maintain the integrity of the findings.

Loke added that the study would be fully borne by the port authority, which would later be supported by the concession companies if the development is approved.

The project, to be located about 50km from the two existing ports in Klang, was estimated to cost about RM200 billion and expected to be completed within 20 years.

Apart from the seaport, the integrated maritime city was planned to host free trade zones, industrial parks, as well as commercial and residential buildings.